Totally agree with your points. I usually stay away from ETFs with exception to play in markets that are hard for an average investor to play in.
Im long in oils and basic materials. PBR and VALE, which I already own, is over 30% of EWZ. So, I thought this was a good play on the emerging middle class in Brazil based on the fact that these huge companies and the country's natural resources are going to help drive the new middle class.
The forthcoming drop in the USD should also help drive this ETF. We do need to be aware of potential hyper inflation in Brazil which has been quite common over the decades.
On May 26 08:28 AM manya05 wrote:
> I looked at BRF but the management fees are very steep for something > that seems to be tracking an index. I guess is the premium for being > the only offering? I do not know, still studying BRF. My second thought > (since you ask) is that this will behave like a yo-yo, it will move > like a rocket when it goes up, but it will fall like a rock in the > next big Dow correction. Be careful.
The Climbing Brazilian Real [View article]
Im long in oils and basic materials. PBR and VALE, which I already own, is over 30% of EWZ. So, I thought this was a good play on the emerging middle class in Brazil based on the fact that these huge companies and the country's natural resources are going to help drive the new middle class.
The forthcoming drop in the USD should also help drive this ETF. We do need to be aware of potential hyper inflation in Brazil which has been quite common over the decades.
On May 26 08:28 AM manya05 wrote:
> I looked at BRF but the management fees are very steep for something
> that seems to be tracking an index. I guess is the premium for being
> the only offering? I do not know, still studying BRF. My second thought
> (since you ask) is that this will behave like a yo-yo, it will move
> like a rocket when it goes up, but it will fall like a rock in the
> next big Dow correction. Be careful.
The Climbing Brazilian Real [View article]
Does anyone have any thoughts on BRF the new Brazilian Small cap ETF?